VAT exemptions and refunds at embassies, international organizations, NATO and EU Armed Forces.

There are two procedures to request exemption from VAT for operations carried out in Spain:

1. Request for prior recognition of exemption (Form 363)
2. VAT refund request (Form 362)

Depending on the operation, it will have to be requested by one procedure or another.

Exemption from VAT will be requested prior to carrying out the following operations:

• Deliveries and leases of buildings and annexed land to be used as:

  • Headquarters of its diplomatic representations or consular offices

  • Residence of the Head of the Diplomatic Mission or Consular Office

  • Headquarters or offices in Spain of an International Organization 

• Executions of works directly formalized with the contractor, the purpose of which is the construction, reform, expansion or rehabilitation of the aforementioned buildings.

• Repair or conservation work on the aforementioned buildings. The amount of each individual transaction must exceed 750 euros.

• Deliveries or leasing with the option to purchase cars to be used by:

  • Embassies, Consulates, International Organizations, for official use.

  • Diplomatic agents, career consular officials and members with diplomatic status of an International Organization, in the units established by the Minister of Finance and Civil Service.

  • Technical and administrative staff of embassies and international organisations, as well as consular employees, provided that they are not Spanish and do not have permanent residence in Spain, in the units established by the Minister of Finance and Civil Service.

VAT taxpayers who carry out the aforementioned operations will not charge the tax, stating on the invoice the recognition of the exemption granted by the State Tax Administration Agency, preserving said recognition as proof of the exemption.

1. Deliveries of goods necessary for official use of:

   • Diplomatic missions accredited and resident in Spain and career consular offices.

   • International Organizations recognized in Spain (within the limits established in the Headquarters Agreements).

2. Deliveries of office supplies for official use, when the total invoice exceeds 300 euros ( VAT included).

3. Supplies of water, gas, electricity and fuel, as well as telecommunications, radiotelegraphy, surveillance and security services for the premises of diplomatic representations, consular offices and international organisations, as well as the residence of the head of the diplomatic mission, the consular office and the international organisation.

4. Consulting, translation, proofreading or composition services, interpreters and cleaning services for official use by diplomatic representations, consular offices and international organizations.

5. Deliveries of goods, in the quantities set by the Minister of Finance as necessary, for personal use and consumption of:

   • Diplomatic agents and members of their families.

   • Career officials of consular offices and their family members.

   • Members with diplomatic status of international organizations with headquarters or offices in Spain (the provisions of the Headquarters Agreement will apply) and members of their families.

• Refund applications (form 362) must be submitted quarterly. A single form must be submitted for each quarter and applicant.

  They shall be submitted to the Ministry of Foreign Affairs, European Union and Cooperation within six months following the end of the period to which they correspond.

• Applications for prior recognition of the exemption (form 363) must be submitted to the Ministry of Foreign Affairs, European Union and Cooperation prior to carrying out the operation.

Exemption applications (forms 362 and 363) must be submitted to the Ministry of Foreign Affairs, European Union and Cooperation, which will forward them to the management centre (State Tax Administration Agency) for processing. The authorisation issued will be forwarded to the interested parties through the Ministry of Foreign Affairs, European Union and Cooperation.

Reimbursement requests from diplomatic agents, career officials of consular offices or members with diplomatic status of international organizations with headquarters or offices in Spain, must meet the following requirements:

• The total amount of each invoice documenting the operations is not less than 240.40 euros ( VAT included). For these purposes, transactions carried out for the same recipient within a maximum period of one calendar month may be included in a single invoice.

• The set of acquisitions for the quarter cannot exceed 9,015.18 euros (Tax Base without VAT).

These are as follows:

• Cars: For Heads of Mission (Ambassadors), the number of units may reach up to 4; For diplomatic agents, career consular officials or officials with diplomatic status of international organizations based in Spain, the number of units may not exceed 3 and for technical-administrative staff and consular employees, the number of units may not exceed 1.

• Tobacco products referring to the total acquisitions made in a calendar quarter: For the Heads of Mission, 18,000 units of cigarettes and 130 units of cigars. For the rest of diplomatic, consular and international organisation personnel, 9,000 units of cigarettes and 65 units of cigars.

• Alcohols and derived beverages referring to the set of acquisitions made in a calendar quarter: For the Heads of Mission, 180 liters of derived beverages and 60 liters of sparkling wine. For other diplomatic, consular and international organisation staff, 90 litres of derived beverages and 30 litres of sparkling wine.